good afternoon, i'm tyler mathisen. stocks are rising today. the dow crossing 40,000 again and reaching an all-time high. gains for the s&p 500 and the nasdaq also moving up after yesterday. those gains, by the way, kel. >> pushing those indices into gains for the week. the nasdaq now higher 11 of the last 12 weeks. dating back to april. but that comes despite losses for microsoft and amazon, believe it or not. >> while those mega caps decline, small caps had a great week. russell 2000 up more than 6%.

home builders had a huge week. kb home and beazer up more than 15% as the cpi and comments from powell seemed to increase the likelihood of a september rate cut. are we entering a new phase of the market or can big tech and small cap all rally together? let's bring in mike santoli. can we have kum-bi-ya? >> you know, tyler, certainly we can. the prospect remains out there. i think that's what we're seeing today, by the way, nvidia up 3% and apple is up a couple of percent. it doesn't seem like a totally changed character of this market. maybe one that is a little less narrow and slightly less reliant and stretched in the direction of those very largest names, which are not only big and popular and crowded and heavily owned but also defensive when people are fearing the macro. i guess there's another option out there which was not just mentioned. maybe it's time we get more of a

pullback or cooling offer in the indexes, which doesn't hit the smaller stocks as hard because they haven't been up as much or maybe not as extended. all of those things are in the mix. i think we can absolutely say there's more room for this reversion to the mean to go on for a bit. we're not even close to the highs on the russell 2000 of 2021. you probably have to go up 10% to get there from here, even though the s&p has been making 40 new highs this year. so there's room for everybody. it's obviously got to be not just about a rate cut but if the rate cut is seen as preserving and extending this expansion so it can be a very orderly soft landing type easing cycle and not the beginning of a heavy rate-cutting campaign. >> mike, stick around. we appreciate it. for more on what the next phase of the market could look like as david smith joins us from rockland trust management group and cnbc senior analyst ron

insana is here with us, also with dynasty financial partners. welcome one and all. david, i'll throw it to you. people love the great rotation question. very few people say, no, it's not. where do you fall? >> we are hoping it is. most active managers are struggling with the fact if you're running a mutual fund you can't be overweight to magnificent 7 due to regulatory requirements and restrictions. we're hoping for broaden for that reason. that would imply there's a broader economic well-being. i use the terminology with our clients at rockland trust that big tech companies go up based on their own phenomena. we're hoping broadening will go up based on weather getting

better. the data we've received over the last couple of weeks with the jobs number last week and cpi yesterday support that. there's going to be a fed cut. ultimately if it's the beginning of a series of cuts should result in positive economic outcome and perhaps we'll manage the outcoming outcome. >> what happened today? >> a couple of things. consumer expectations eased off a little bit which reinforces the federal reserve probably needs to make an interest rate cut, inflation expectations among consumers included in that university of michigan sentiment reading that came out today. fell to the lowest level we've seen in quite a number of months. ppi coming in slightly above expectations wasn't all that hot and doesn't change the inflation narrative much. so, i think as was being said, the soft landing scenario looks good. the atlanta fed just upgraded its gdp forecast. is it still looks fairly

goldilocks. if it's going to broaden out, lower interest rates generally will favor small caps as well as large caps but they'll get that tailwind they needed. >> what over kind -- >> no cap. >> i borrowed that from my kids. i don't know what it means. >> the natural place of mind is, well, the unemployment rate is on a 0.7 upswing from trough to peak right now. i know you know these cycles better than anyone. have we seen a cycle where the unemployment rate starts to rise and stops before it goes too far? >> there was a little rise off the absolute low in the unemployment rate in the mid-'90s but then it basically did just stall out and either hover or come back down at times. yes, there have been these instances. i know you're referring to these models that suggest at a certain point the unemployment rate does get upward momentum and does tend to be self-reinforcing at a

certain point. broader point that i think you're touching on, this that to be a growth scare and not a real stall. we'll see if that remains the case. as ron said, underlying growth seems okay. it still seems roughly near or just below trend. that would be great if that's where we manage to settle out especially because the earnings cycle is not exactly matched up at the moment with the broader economic cycle. it seems as if annualized growth rates will be better than you might expect from a slow growth economy. everything can co-exist at once for this interim period but the way it breaks from here matters quite a bit. >> david, you have eclectic stocks you like. explain why. >> in this broadening theme, if investors get comfortable with the soft landing they're going to look beyond a.i. a.i. has been the driving trend

in the magnificent 7's performance, broadly speaking. if, in fact, they look more broadly than that and we have a normal shaped interest rate curve, that's beneficial to financial companies, specifically insurance companies. as they roll off they'll be reinvesting those proceeds in the intermediate to long term which will be beneficial. with chubb, there have been significant increase in premiums. that's been beneficial as long as people don't cut their coverage. chubb focuses on more affluent clientele who tend not to be as price sensitive. we feel chubb is in a particularly good position to take advantage of both of those phenomena. we're excited about accenture's a.i. exposure. if you think about the enhancement we're going to get in productivity as general operating businesses, it's going to come from this technology that is very, very new, there are all new vin doors and i.t.

departments in corporate america need to figure this out. and venture is well positioned to help these companies sort through all that. there's a couple examples of things we think investors will begin to focus on as they look beyond a.i. specific direct plays and look beyond on what else could potentially benefit. >> i want to believe it's the roaring '20s, but it's unusual to have a period where the unemployment rate rises. >> you get the slowdown that's not necessarily fatal in any shape or form. if you look at jobless claims yesterday, they fell. we're not hearing from companies they're doing mass, mass layoffs. you're hearing about it on a more selective basis. a lot is having to do with industry-specific issues as opposed to economic issues. we'll probably slow down. a recession, i think, would require inflation to spike back up and the fed to tighten.

financial conditions are more than friendly as far as the stock market is concerned. i'm not sure that's true on the credit side. there's a lot of money sloshing around supporting the economy as well. >> folks, thank you very much. david smith, ron insana, mike santoli. news playing out big in the bond market. rick santelli tracking that for us. >> yes, tyler. yesterday the cpi excited the market. you look week-to-date of two-year you can see how rates just dropped. today rates largely ignore a much warmer ppi with warmer revisions. it did pay attention, as ron point out, to the weaker confidence and, of course, the inflation readings within university of michigan. open the chart up to first week in february because we're on pace for a four-month low yield close in twos. open it up year-to-date,ly draw your attention to something significant. the high close for the year, that's been 5.04.

the low yield close has been 4.14. the average is 4.59%, which is where we were hovering around 4.60 all week until yesterday's cooler than expected cpi. let's look at week-to-date of tens, where it's been spending its trading time around 4.28 to 4.30 until yesterday. open the chart up to march 27th, we're on pace for 3 1/2 month low yield close. today, the low yield close 3.88. the high yield close 4.87. the average is 4.29%. we are now closing the week below the midpoint of the year and short and longer term yields. that is technically significant. we want to continue to monitor that, especially on a week where we have auctions of longer dated treasuries. tens went very well. 30s, not so much. tyler, back to you. >> rick, thank you very much. a quick power check as we

head to break. carvana higher after ptig initiated shares at a buy saying it can grow market share and profit simultaneously from here. it's already up more than 80% in the past three months. on the flip side, wells fargo sinking on earnings reporting a 9% decline in net interest income for the second quarter. we'll have more results from the rest of the banks when "power lunch" returns. ♪ (alarm sound) ♪ amelia, turn off alarm. amelia, weather. 70 degrees and sunny today. amelia, unlock the door. i'm afraid i can't do that, jen. ♪ (suspenseful music) ♪ why not? did you forget something? ♪ (suspenseful music) ♪ my protein shake. the future isn't scary. not investing in it is. you're so dramatic amelia. bye jen. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges,

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let's look at the results now with david conrad, managing director at kbw. let's look at those big banks, mr. conrad. it would seem based on how they're performing today, the fact that you call them all market perform and they are all close to what i see to be your price target, that you don't think these big banks are the place to put fresh money and they may be fully valued. am i right or wrong? >> i think that's fair. i think when you look at banks overall, in terms of the banks that reported today, bank of new york is a little different animal but gsib is up over 5%. we do like that name. but it is a different animal here. in terms of these large banks, jpmorgan had a very solid quarter. they had very strong investment banking, up almost 50% year over year. but it is trading near 13 times 2025 numbers. that is above its historical

valuation and most financials are at steep discounts in the market. jpmorgan isn't as much. i think that valuation, it's off today a little bit because it's overrun and has a valuation and they were relatively consistent with their guide. but it was still a solid quarter. >> there's not much to nitpick in jpmorgan or citi. i suppose people are pointing to the net interest income gap at wells fargo as the big problem there, which is why that stock is down as much as it is. z >> yeah. with wells fargo that's been a turn-around story. they've done a great job and really lowering expenses and buying the index stock and restructuring the company. today we had a little setback in kind of a recast of our expectations. they did disappoint on nii. it's interesting is they didn't change their full-year guide but moved closer to 9% relative to

closer to down 7%. worse guide than what we were expecting. people are scratching their head because they're asset sensitive. rates, although we expect the fed to cut rates, for the bulk of the year they've been higher so that should be a tailwind for wells fargo but it hasn't. i think there are two factors. loan growth has been disappointing. i think that's a read-through for next week as well. the only loan growth is credit cards. i would circle back to the fact that debt capital markets is wide open. so, i think bond underwriting is stealing a little share from corporations tapping banks' balance sheets. the other issue is deposit costs are still creeping up even though the fed is done raising rates and potentially lowering rates later this year. there is a lag in deposit costs. with wells specifically they had higher adjust costs in wealth and business. i think that's a little more of an outlier than what we would see for the rest of the names

next week. those are the two factors. >> i though that was interesting, david, customers you think read through to that and they're getting more savvy and looking for higher yield places to put their deposits. do you think the fed cuts that if they're only cutting 25, 50 basis points? >> i don't think it will in the first couple of moves. to your point, banks are actually still -- their entire deposit portfolio is still below market levels you see in money markets. i think it depends on the mix. if you have heavy consumer, heavy wealth, i think you'll have a challenging time moving down your deposit costs over the first couple moose. in fact, it could go the opposite way. you could have up costs and down rates. now, bank of new york, again, recorded today their deposits are almost all institutional. so we expect a really strong deposit on the way down. we think that name is unique that they will get the deposit costs down. >> you have some outperforms,

bank of new york is one of them, goldman is another, truist is another. largely you've got market perform. are you just luke warm on the segment right now? >> i think that's right. i think there's limited catalyst. until we get the yield curve, which is now inverted, i think it will be flat to slightly positive as we move through '25. i think we have to get through credit visibility and the different shape of the yield curve. i think what i'm trying to identify with all those outperform ratings are banks underearning for various reasons. and whether in the case of kia, bank of america, we think goldman is still in a restructuring phase with the consumer business. a big tailwind in capital markets. there's unique company catalysts in those names. for the group overall, we think investors are going to stay a little bit subdued with them until we get a better shape of

the yield curve. >> thank you very much. have a great weekend. >> thank you. >> stay cool. still ahead, digging in. president biden was defiant and mostly energetic in last night's press conference though he still had a couple of gaffes. de do enough to sway his doubters and bring donors back to his side? we'll dig in when "power lunch" returns. your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates

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(toddler) okay, bye now! welcome back to "power lunch." stocks are jumping, leaping to end the week. dow's above 40,000 with a 440-point rally. that's a new record. similar to s&p to 4648. everything seems to be up. turning to politics now. last night's press conference from president biden probably did little to change minds but didn't do enough to change the flow of money from was in donors? megan has the latest. >> so, the short answer here to

your question is, no, at least not yet. no donor or bundler i've spoken with today feels like last night changed anything. he didn't fail the test but he also didn't do enough to quiet his critics. that means the fund-raising is also on hold. multiple bundlers tell me they just don't feel like they can ask for money right now. another well-connected democrat says the bundlers who are reaching out to people are getting crickets back, adding that, quote, the donor class is frozen for the time being. the other point to note here, though, the caveat is i've also heard from multiple sources in the fund-raising world who say they're confident the money will flow just as soon as democrats have certainty in their candidate, whether that's biden or someone else. one donor and fund-raiser told me, as long as there is a path to victory or a perceived path to victory, then money won't be an issue. but it is something we'll have to watch a little longer, especially as the drum beat of calls for his resignation continues. just in the last hour a 19th democratic lawmaker, mike levine

has adds his name to the list. biden will continue outreach tomorrow. he is hitting the campaign trail today and next week and a fund-raiser in texas on monday. it's a busy schedule. clearly, he's heeding the calls for the public to hear from him more and see him more. his campaign now is just hoping it's enough. >> let's talk a little bit about the people in the campaign and his inner circle who are doing, i'm sure, what you just said they need to do, and that is to plot the path to victory for joe biden. not just path to victory for the nomination but the path to victory for the presidency. what are you hearing about that and what would the elements of that path potentially look like? >> you know, some in the campaign say it's a matter of keeping their heads down and doing the work. we saw the campaign sent a long internal memo and held an all-hands call after the press conference, trying to refocus, saying their internal polling

still looks good. it's not all that changed from the debate and even the press conference, they want to focus on swing states and stick to the playbook they had already laid out. on the other hand, though, some of those campaign staffers and close biden advisers who met with lawmakers yesterday, the reporting out there now is they weren't sharing any internal polling. they weren't giving those specifics that lawmakers and others, donors in particular, are hungry for. they want to sort of keep their heads down and grind it out and move past this. at some point it becomes a question, though, if that's enough because they've been doing that for two weeks and it hasn't worked so far. >> i shouldn't be surprised. i thought after a relatively solid performance last night that perhaps we wouldn't be hearing as much as we seem to be hearing today of more voices joining that chorus saying it's time for the president to step aside. what would be the signs this weekend, other than a literal change, that a change is in the works, maybe a heir ris ticket -- by the way, if harris is the candidate, who's her vp?

>> there's already a lot of speculation about who her vp is. a lot of people are talking about a white man with governing experience, roy cooper, josh shapiro of pennsylvania. but i think the keys to watch are going to be not only what members of congress are doing but what is congressional leadership doing, especially after biden continues to make this outreach to the caucuses. do we hear from nancy pelosi again? we heard from jim clyburn this morning and he was resolute in support of biden but he also said he supports harris. that's going to continue the news cycle for a little longer of, maybe he would be okay with biden stepping aside. unless and until we start to see some key leadership figures put irtheir foot down to say, enough is enough, we're moving on, i think the drum beat continues. >> it's what's not been said that is almost as telling as what has been said. former speaker pelosi, current

ranking member -- minority leader jeffries, they have not come out -- or even schumer beyond saying, i'm with joe, hasn't come out in a full-throated endorsement kind of way. thanks very much. >> and these are -- >> go ahead, please. finish. >> i was going to say, these are savvy politicians, tyler, so they know exactly what they're doing. with every word they say or don't say, they recognize they're leaving the door open. they have been leaving the door open for more of this to continue. some might be political games. nancy pelosi recognizes many of her colleagues are in tight races in swing states. maybe those are the folks she says, okay, go out and this might be good for your race. at some point, though, does the hammer come down? do they stop doing that or let it keep going? that's the next tell. >> very interesting. thank you very much. appreciate it. coming up, formula 1 racing but on water. we'll get a glimpse into the new sai

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welcome back to "power

lunch." i'm kate rooney with your cnbc news update. the jury? senator menendez trial began deliberating. the new jersey democrat and his codefendants are accused of a yearslong bribery scheme and menendez's wife also charged but she will be tried separately. the couple has pleaded not guilty. if convicted, he could face decades in prison. the gop-led house homeland security committee subpoenaing the department of homeland security to demand the release of more information about immigrants with potential terror links who have crossed the southern border. committee chair mike green says reporting from nbc news and others about migrants with ties to icis-k and other terror groups who have been arrested led to that subpoena. in parts of texas, the heat index will once again reach 100 to 105 degrees today as electricity providers there say just over 1 million residents remain without power in the wake of hurricane beryl's landfall. about 42 million in the western

u.s. are still under heat alerts today as the national weather service warns of, quote, dangerous and record-breaking heat over the weekend. back over to you. a new and high-stakes sport is gaining traction in the u.s. ten international speeds, high-speed racing around the world. it's not formula 1, it's sailing. it has backing of larry ellison and mark lasri. we have sail gp ceo russell coutts. >> ahead of the final weekend, which will shape up to be great races. thank you for being with us. >> thank you. >> everyone in sports wants to be the next f1 in terms of its success, mainstream appeal. sail gp has a lot of those elements, high risk, high stakes, $2 million prize this weekend. what do you need to do to get to the next level to have that

mainstream access? >> the interesting thing is we've seen incredible growth over the last, really, six months even. new teams coming on. we just announced a new team from brazil, we have another announcement in september, another exciting team. as we expand into those markets, i think we're drawing more fans and really see what is even an exciting racing product. i was just saying before that really what we're seeing is this isn't the avid sailing fan following sailgp. it's the general sports fan and also the people that are interested in the back stories behind the athletes. >> you've got a growth fan base attracting more investor interest. mark lasri bought a team for $35 million. put that into perspective and how valuations are looking in the league. >> i mean, i suppose i always thought that the teams would

be -- would gain in value over time. i didn't think it would happen this early. it's really been in the last year and a half, we were selling teams at $5 to $10 million. then the first european team sold for $20 million. then the american team sold for $35 million. now we're seeing sales at $45 million. i think by the time we're halfway through season 5, i don't think unreasonable to see $80 million. >> $80 million for a team? >> yeah. >> who is interested? have you heard from tech ceos and founders who have gone into the sailing world? >> yeah. it's not people that may be sailing fans. i would have thought we would have had wealthy individuals interested in sailing that would have bought one of these teams and, you know, and had some fun with it. what we're seeing is real investment coming in where people are seeing an opportunity, seeing the growth, they know that some of the

expansion plans for the league are coming up and they're seeing an opportunity. >> have you heard from the private equity interest which has taken a growing interest in professional sports? >> yes. not only in teams but the league. >> larry ellison started this league with you. it started with avid sailors and moved to a broader group of investors. what's his involvement like, and his son, david ellison, who led the bid for paramount? >> sure. larry is hugely focused on tech. he's interested in sports as well. and i guess when we started this, we had this vision that there was this gap in sailing industry and when these high-speed, super fast hydrofoiling boats came along, we felt that we could set up a league like sailgp structured like the other sports leagues. we looked at some other big sports leagues in the u.s., like the nba, the nfl and so forth,

took some of the lessons that have been learned from there and applied it to this new sailing property. and we've been surprised at how quickly it's developed. pleasantly surprised. >> you also have a youtube docuseries. it's done quite well. not like the success of the drive to 60 on netflix. are there plans to spend more money, a splashier series on netflix or paramount plus? >> currently we produce a series, a youtube-based. it got about 2.5 million viewers last year. that's $85,000 budget. we've got -- in process now to produce an enhanced version of that, greatly enhanced version. >> bigger budget, is that what that means? bigger platform.

>> really exciting story, by the way. and then also longer term do more of a drive to survive type show where you can really get behind the scenes of the tech, of the individuals, the people story battling for their place on the team as athletes and also the owners, the business side of it and because the boats are all the same, all the teams use the same equipment, we can tell a lot of those stories and bring them out in the open. there's no secrecy. there's some business but no real secrecy behind the tech. >> and maybe create your next lewis hamilton or max verstappen. we'll be tracking your progress. good luck this weekend. i'll hand it back to you at hq. >> fascinating. thank you both very much. this week's inflation data showing a big increase in cost one key area most of us have to fork on over every month. car insurance premiums rising

20%. contessa brewer joining us. any sign these are topping out yet? >> not yet. the cpi puts it in black and white. vehicle owners already know. 19.5% higher in june than last june. up almost a full percent just from may. meanwhile, rising rates are encouraging investors in the insurance companies. look at the etfs for insurance, all up, let's say roughly 15% year-to-date. look at allstate specifically. it's up 15%. progressive up 34% this year. catastrophes are already hitting hard as well. progressive announced three-quarters of $1 billion in catastrophe losses, in one month and before hurricane season kicked in. those storms will factor into earnings for multiple insurers. that estimate of catastrophe losses along with prediction of lower net interest income prompted goldman sachs to change

from $1.92 to a loss of $1 a share. allstate stock is in the green. it's up about 1%. you have progressive up, berkshire hathaway, which owns geico up almost 2% and travelers up 1.3%. travelers reports earnings a week from today. >> do these property and casualty insurers have complete freedom to pass through pricing power or are they subject to any state regulations? >> no, they don't. many states the rate requests go through an insurance commission. in california, for instance, the insurance commissioner is an elected position. if you're an elected position, you need to please the voters. what car insurers especially saw for years and years is they would go in, ask for a rate increase and it was denied. that has changed this year. and the state has come together because the marketplace has become impossible. many people could not get car

insurance. go to the state insurance of last resort and they're trying to fix that system. rates are just now starting to catch up with several years of lost costs that have exceeded what the premiums were coming in. >> people couldn't get insurance because the companies wouldn't write the policies? >> yeah. in fact, a lot of the insurers said, we can't do business here. we can't make enough money on premiums to cover our costs. so, we're done. and when there's a lack of competition it becomes harder and harder to get insurance and insurance becomes necessarily more expensive. and then you go in, you try to get a rate increase because you're the only insurer and it doesn't work. it's a vicious cycle. >> i got it. contessa, thanks. contessa brewer. coming up, the second wave of a.i. wall street apparently thinks oracle is an under-the-radar beneficiary. we'll discuss when "power lunch" returns.

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lunch." let's get a quick check. competitive eater joey chestnut dragged down by starbucks but his pick of oracle has been a winner, up 25% since our draft at the end of april. >> i'm picking oracle. >> why is that? >> well, you know, they got -- just announced they're going to be moving to nashville. i'm a big believer in larry ellison. >> are they an a.i. pick in a way or an also ran in a.i.? >> i don't think we know. >> now we might. kate rooney joins us with a look at oracle's place in the a.i. race. kate? >> kelly, yeah, we're starting to get that answer to that question there after oracle's last earnings report, at least, it has been emerging as a key player in a.i. thanks to this endless demand we're seeing for servers and cloud computing. it's cloud business. it's a lot smaller than what you'll see around the mag 7. some names like amazon and microsoft but it has inked some key partnerships with openai, microsoft, google as well as,

and saying oracle has seen enormous demand for training a.i. large language models. this stock has been in this cohort of what some are calling second-tier a.i. winners. shares are up 35%. this week, though, the stock did get hit a bit after reports of elon musk's xai scrapping a $10 billion deal for oracle servers and then rented ships. wallstreet mostly shipped that off. oracle's upside is outweighing the loss of a major customer. jeffries says the musk deal has, quote, no impact. they say it wasn't factored into revenue yet and oracle continues to see exceedingly strong demand. part of the stock story was the setup really coming into this year. tefrcore said sentiment towards oracle was at a low water mark and oracle went from zero to hero recently. it was their contrarian pick for the year. not a lot of confidence in the cloud growth and revenue growth as well.

oracle does trade at a discount if you compare it to names like microsoft, but a possible tiktok ban is seen as one hangover on the stock. oracle's cloud does power that social media app, guys. >> what do you make of this kind of -- what's going on with elon musk and xai? >> interesting. that news that he was pulling back from oracle does signify he wants to move faster. that's sort of aligned with the musk ethos of moving fast and breaking things and sort of pushing the limits of what's possible. so i thought that news was interesting this week that if they do pull back from oracle it indicates if they're spending big, trying to move quickly on xai. i would say the sentiment in the valley is that they are sort of coming from behind here. that, you know, names like chatgpt and openai, which musk was a founder of, have been first movers. he's seen of on his heels when it comes to a.i., but not a lot of people would bet against musk.

he's known to pull off some wild endeavors and it's worked in the past. i think it's one to watch. kind of coming from behind there. >> i think joey chestnut mentioned oracle is moving its headquarters to where, to nashville? >> yeah. >> i thought they had already left silicon valley. >> yeah. they have. they're not really a silicon valley company at this point. it was austin and then -- it's interesting that was his thesis, the nashville move. a lot of other people look at more of the fundamentals. again, talk about people you would not bet against, joey chestnut. >> yeah. >> prolific, but it's interesting. espn had this comparison of people in their sports, tiger woods, lebron james, joe judge chestnut -- >> is right up there. >> exactly. and a good stock picker. >> he got one right. starbucks he's not doing so well on. kate rooney, thank you. coming up, much of investors' attention has been on big bank results and the aforementioned mag 7, but what about the rally in small caps? retopis xt will give us his

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time now for today's three stock lunch.

he chose jpm as the best ever. banks kicking off earnings season. we asked for your favorite bank and you did pick jp morgan. what's your take and why do you like it? >> my favorite bank, unfortunately we're trimming and selling the name. while it is certainly the best of breed and the best bank in the world, i think this has reached a full valuation. even in the best banks you have to take profit. this is a name that i think is buy the sizzle, sell the steak. also i think traders have gotten ahead of themselves in the anticipation of lower short rates making a better yield curve, improving net interest income on a lot of banks. we think that is baked into the price. any further up side would have to come from surprises out of the consumer or other areas of the bank. the stock's trading two times book which historically has been

our place to start trimming and taking profits. so we still own the name. we will for a very, very long time. we're certainly not over valued and not buying the name up here, that's for sure. >> not chasing it. let's move along to johnson & johnson. this was your stock to watch among those reporting next week. why would you be looking at this one? is it a buy for you then? >> yeah, it actually is. almost exactly the same story. obviously it's not a bank, but nonetheless, this is a stock that's been hurt for a variety of reasons. along with the staples, these are names where typically people gravitate towards in low interest rate environments. they've not had to gravitate towards these names at all because they're getting 5% in money market. now we feel that tide is shifting. i think you can go looking in the staples area. this is a name trading basically 14 times earnings, has a really hefty balance sheet. if anybody's concerned about the litigation risks, the headwinds that johnson & johnson is

facing, they've got $26 billion in cash. a healthy dividend, we think money's going to rotate into the staples, specifically this name we like. >> all right. we finally asked you to choose a small cap stock with the russell 2000 jumping this week. vaughn h-- on holding up. >> yeah, on recent highs which came after their last quarterly announcement. the on cloud shoe maker taking market share from the likes of nike and others. it is trading richly. 34 times earnings, but if they hit those estimates, which we feel could be viewed as conservative, that's a 200% earnings growth. this is a name we like. we think the small cap move continues. this is not just a one-day thing. we think it's going to be bumpy, but we think there's opportunity for follow through. this is a name on that last earnings call pull back we like and we are buying here.

>> quint, thank you very much. have a great weekend. stay cool. >> thank you, you, too. ment. you can always hear us on our podcast. be sure to follow and listen to "power lunch" wherever you go. we'll be right back.

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inevitable. ♪♪ ♪♪ welcome back. shaping up to be a pretty huge market day with the dow potentially closing over 40,000 for the first time. up 400 points. 1%. the s&p, nasdaq are stronger as well. >> we have less than two minutes in the program. several more stories we'd like to let you know about. let's get right to it. at&t says hackers stole, believe it or not, six months' worth of call and text message records of nearly all of its customers, all of them according to a new sec filing, the bulk of the data was recorded between may and october of 2023. at&t claims the actual content of the calls and messages was

not compromised, and neither was the personal information of the individual owners of the phones involved. at&t's network has 127 million devices connected to it according to its 2023 annual report. it sounds like they've got a lot of data, but maybe not so much that would be -- >> i think this is the meta data. it can basically figure out -- you know, if it can figure out phone numbers, it can figure out other phone numbers people spoke to, for how long a duration, geography. a lot of potentially damaging stuff if people can sift through it. at&t probably still has to answer a little bit more about this. well, that one disappeared. we'll go onto the next one, shall we? >> we're going to double click on the next one. the double click, the phrase double click, is a phrase driving many in corporate america crazy. being used in the context of taking a closer look and even jensen long of innvidia, we're

going to double click on that. delve into it. it's like it's right up there for me as dive in. take a deep dive. >> you know, my grandpa used to hate bottom line. used to drive him crazy. i don't know why. >> you guys double click on scott's program which is coming up here in just a minute. >> i'll see you in a couple of weeks. >> yes. >> "closing bell" starts right now. thanks so much, welcome to "closing bell." scott wapner live from the new york stock exchange. major rally for stocks. let's go to the scorecard. with 60 minutes to go in regulation. new interday high for the dow, back above 40,000 for the first time since may. that's been a minute since we've seen that. how about the russell in m the midst of its strongest two-day run for the entire year. broad-based run, almost everything is working especially when it comes to areas of the market. materials, discretionary stocks. they're having a day. tech there as well